Slide 1: First Quarter 2022 CFO Commentary
investor.arrow.com First Quarter 2022 CFO Commentary
Slide 2: CFO Commentary
2 2 CFO Commentary As reflected in our earnings release, there are a number of items that impact the comparability of our results with those in the trailing quarter and prior quarter of last year. The discussion of our results may exclude these items to give you a better sense of our operating resul
Slide 3: First-Quarter Summary
3 3 First-Quarter Summary Arrow Electronics experienced strong market demand for electronic components and associated design, engineering and supply chain services in the first quarter, leading to record quarterly sales that exceeded the high end of the prior expectation. Arrow is helping customers
Slide 4: Consolidated Overview First Quarter 2022
4 Consolidated sales were $9.07 billion Above the prior expectation of $8.35-$8.95 billion Changes in foreign currencies negatively impacted sales growth by $152 million year over year, slightly below the prior expectation of a $160 million negative impact to growth 4 Consolidated Overview First Qua
Slide 5: Tax rate and diluted earnings per share
5 5 Effective tax rate was 23.5%, and non-GAAP effective tax rate was 23.5% Non-GAAP effective tax rate was in line with the prior expectation and the target long-term range of 23% - 25% Diluted shares outstanding were 69 million In line with the prior expectation Diluted earnings per share were $5.
Slide 6: Components Global
6 6 Components Global Record quarterly sales, operating income, and operating margin First-quarter sales increased 12% year over year Lead times increased year over year and compared to the prior quarter Book-to-bill was above parity in all regions Backlog increased significantly year over year Oper
Slide 7: Components Americas
7 7 Components First-quarter sales increased 38% year over year Record sales for any quarter Strong growth in transportation, communications, industrial, and aerospace and defense sales year over year Growth in medical devices, lighting, and data processing sales year over year Sales ($ in millions)
Slide 8: Components Asia
8 8 Components First-quarter sales decreased 8% year over year Record first-quarter gross profit and gross profit margin despite lower top line due to improved customer and product mix and market conditions driving higher prices compared to the prior year Growth in transportation sales year over yea
Slide 9: Components Europe
9 9 Components First-quarter sales increased 23% year over year Sales increased 31% year over year adjusted for changes in foreign currencies Record first-quarter sales Strong growth in industrial, industrial automation, communications, computer/data processing, aerospace and defense, and lighting s
Slide 10: Enterprise Computing Solutions Global
10 10 Enterprise Computing Solutions Global First-quarter sales decreased 3% year over year Sales decreased 1% year over year adjusted for changes in foreign currencies Operating income increased 11% year over year Non-GAAP operating income increased 10% year over year Operating margin of 4.6% incre
Slide 11: Enterprise Computing Solutions Americas
11 11 First-quarter sales decreased 9% year over year Decrease in storage and virtualization software year over year Sales ($ in millions) Americas Enterprise computing solutions Americas sales decreased 9% year over year $1,151 $1,167 $1,204 $1,357 $1,048 Q1-'21 Q2-'21 Q3-'21 Q4-'21 Q1-'22 Enterpri
Slide 12: Enterprise Computing Solutions Europe
12 12 Sales ($ in millions) Enterprise Computing Solutions Europe Record quarterly sales and operating income $791 $785 $685 $980 $827 Q1-'21 Q2-'21 Q3-'21 Q4-'21 Q1-'22 First-quarter sales increased 5% year over year Sales increased 11% year over year adjusted for changes in foreign currencies Grow
Slide 13: Cash flow, working capital and share repurchases
13 131 Repurchased approximately $250 million of stock in the first quarter, bringing total cash returned to shareholders over the last 12 months to approximately $1 billion. Cash Flow from Operations Cash flow provided by (used for) operating activities was $(200) million in the first quarter and w
Slide 14: Outlook: Second Quarter 2022
14 14 Outlook: Second Quarter 2022 We are expecting the average USD-to-Euro exchange rate for the second quarter of 2022 to be $1.08 to €1 compared to $1.21 to €1 in the second quarter of 2021. We estimate changes in foreign currencies to have negative impacts on growth of approximately $300 million
Slide 15: Information Relating to Forward-Looking Statements
15 Information Relating to Forward-Looking Statements This presentation includes “forward-looking” statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow’s future financial performance, including its outlook on financial results
Slide 16: Certain Non-GAAP Financial Information
16 The company believes that such non-GAAP financial information is useful to investors to assist in assessing and understanding the company’s operating performance. 16 Certain Non-GAAP Financial Information In addition to disclosing financial results that are determined in accordance with accountin
Slide 17: Earnings Reconciliation
($ in thousands, except per share data) Earnings Reconciliation (1) Other includes gain on investments, net. (2) The sum of the components for non-GAAP diluted EPS may not agree to totals, as presented, due to rounding. 17 Three months ended April 2, 2022 Reported GAAP measure Intangible amortizatio
Slide 18: Return on Working Capital Reconciliation
18 18 Return on Working Capital Reconciliation ($ in thousands) QUARTER ENDED April 2, 2022 April 3, 2021 Numerator: (unaudited) (unaudited) Consolidated operating income, as reported $ 510,376 $ 299,503 x4 x4 Annualized after-tax consolidated operating income, as adjusted $ 2,041,504 $ 1,198,012 No
Slide 19: Return on Invested Capital Reconciliation
19 19 Return on Invested Capital Reconciliation (1) Operating income, as reported, and non- GAAP operating income is adjusted for noncontrolling interest and equity in losses of affiliated companies to include the pro-rata ownership of non-wholly owned subsidiaries. (2) The tax effect is calculated